Try this - Go to control panel, click on administrative tool, & then select "local security policy." On the left hand side under "local policies" select "user right assignments." In the main window look for & click on the "Back up files & directories" policy. Any user(s) or group(s) that you want to be able to create/use restore points must be listed here. If your user/group isn't listed you must add it. So add Steve or Administrator, or to cover both at the same time add the group Administrators or Backup Operators. That should allow you to use system restore points. The default entries are Administrators & Backup Operators.

Bumpkin, sadly for you, the Local Security Policy snap-in is only available in XP Professional :(

You may be able to get System Restore to work if you use XP Home's hidden Administrator account in Safe Mode:

Start the PC and immediately start tapping the F8 key quickly until you get to the Advanced Options menu. Using the arrow keys on the keyboard, select "Safe Mode" then hit the Enter key to confirm your selection. When you arrive at the welcome screen you should see an additional user called "Administrator" so click on that one and see if Sys Restore now works for you.